Business Segments

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Business Segments

NOTE 2. Business Segments

We report two distinct business segments.  The first segment is Mode, which includes the Mode Transportation, LLC (“Mode LLC”) business we acquired on April 1, 2011.  The second segment is Hub, which is all business other than Mode.

Hub offers comprehensive intermodal, truck brokerage and logistics services.  Our employees operate the freight through a network of operating centers located in the United States, Canada and Mexico.  Each operating center is strategically located in a market with a significant concentration of shipping customers and one or more railheads.  Hub has full time employees located throughout the United States, Canada and Mexico.

Mode LLC has Independent Business Owners (“IBOs”) who sell and operate the business throughout North America, as well as sales only agents.  Mode LLC also has a company managed operation and corporate offices in Dallas, TX, a temperature protected services division, Temstar, located in Oak Brook, IL and corporate offices in Memphis, TN.

Mode LLC markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents who enter into contractual arrangements with Mode LLC.

The following is a summary of operating results and certain other financial data for our business segments (in thousands):

	Three Months									Three Months
	Ended June 30, 2016									Ended June 30, 2015
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Revenue	$	648,523	$	231,924	$	(24,890	)	$	855,557	$	686,451	$	233,847	$	(20,785	)	$	899,513
Transportation costs		565,448		200,509		(24,890	)		741,067		614,289		204,280		(20,785	)		797,784
Gross margin		83,075		31,415		-			114,490		72,162		29,567		-			101,729
Costs and expenses:
Salaries and benefits		39,787		3,815		-			43,602		35,288		3,549		-			38,837
Agent fees and commissions		13		18,347		-			18,360		14		16,672		-			16,686
General and administrative		14,226		1,857		-			16,083		13,194		1,569		-			14,763
Depreciation and amortization		1,830		318		-			2,148		1,647		320		-			1,967
Total costs and expenses		55,856		24,337		-			80,193		50,143		22,110		-			72,253
Operating income	$	27,219	$	7,078	$	-		$	34,297	$	22,019	$	7,457	$	-		$	29,476
Capital Expenditures	$	20,314	$	10	$	-		$	20,324	$	8,550	$	109	$	-		$	8,659

The following tables summarize our revenue by segment and business line (in thousands) for the quarter ended June 30:

	Three Months									Three Months
	Ended June 30, 2016									Ended June 30, 2015
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Intermodal	$	438,133	$	116,963	$	(22,168	)	$	532,928	$	464,904	$	118,121	$	(19,958	)	$	563,067
Truck brokerage		83,140		81,374		(475	)		164,039		93,067		82,691		(417	)		175,341
Logistics		127,250		33,587		(2,247	)		158,590		128,480		33,035		(410	)		161,105
Total revenue	$	648,523	$	231,924	$	(24,890	)	$	855,557	$	686,451	$	233,847	$	(20,785	)	$	899,513

The following is a summary of operating results and certain other financial data for our business segments (in thousands):

	Six Months									Six Months
	Ended June 30, 2016									Ended June 30, 2015
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Revenue	$	1,263,751	$	440,755	$	(43,090	)	$	1,661,416	$	1,329,894	$	447,369	$	(41,809	)	$	1,735,454
Transportation costs		1,101,522		380,107		(43,090	)		1,438,539		1,194,547		391,859		(41,809	)		1,544,597
Gross margin		162,229		60,648		-			222,877		135,347		55,510		-			190,857
Costs and expenses:
Salaries and benefits		79,883		7,582		-			87,465		70,948		7,365		-			78,313
Agent fees and commissions		27		35,235		-			35,262		29		31,483		-			31,512
General and administrative		28,948		3,779		-			32,727		25,392		3,442		-			28,834
Depreciation and amortization		3,644		639		-			4,283		3,265		662		-			3,927
Total costs and expenses		112,502		47,235		-			159,737		99,634		42,952		-			142,586
Operating income	$	49,727	$	13,413	$	-		$	63,140	$	35,713	$	12,558	$	-		$	48,271
Capital Expenditures	$	24,945	$	272	$	-		$	25,217	$	23,548	$	168	$	-		$	23,716

	As of June 30, 2016									As of December 31, 2015
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Total assets	$	1,093,952	$	180,902	$	(8,384	)	$	1,266,470	$	1,127,042	$	181,514	$	(7,410	)	$	1,301,146
Goodwill		233,096		29,389		-			262,485		233,205		29,389		-			262,594

The following tables summarize our revenue by segment and business line (in thousands) for the six months ended June 30:

	Six Months									Six Months
	Ended June 30, 2016									Ended June 30, 2015
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Intermodal	$	851,940	$	229,329	$	(40,117	)	$	1,041,152	$	885,855	$	228,813	$	(40,367	)	$	1,074,301
Truck brokerage		164,550		148,722		(502	)		312,770		182,359		157,043		(582	)		338,820
Logistics		247,261		62,704		(2,471	)		307,494		261,680		61,513		(860	)		322,333
Total revenue	$	1,263,751	$	440,755	$	(43,090	)	$	1,661,416	$	1,329,894	$	447,369	$	(41,809	)	$	1,735,454